Gold vs. Silver. Bullion vs. Equities. What's the Trade?

The fundamentals behind the precious metals rally, specifically gold and silver, are very different. Let's take a closer look.

Gold

• The rally, like equities, has been driven greatly by the liquidity wave created by the Federal Reserve's fiscal policies. These easy money policies have led many investors to structure their trades around the saying "Don't fight the Fed". By realizing and accepting the fact that as long as the USD continues to face downward pressure, gold prices will rise, traders have been successful.
• The idea of Gold as an alternative currency has been gaining further popularity due to current economic, political, and environmental situations, which I will discuss in my next post.

Silver

• The rally in silver has been driven by speculation and therefore lacks the fundamentals behind such a strong movement.
• Silver has been appreciating at a much faster pace than gold, but relies almost entirely on market sentiment, and poses a risk of quicker depreciation as well.

Here are some things to remember:

• Buy in on pullbacks, they will occur, and rallies do not last forever. Be patient.
• Always have an exit strategy. This is a trade, not an investment. Lock in profits at technical levels of resistance.

General Strategies:

• Buy into Gold Bullion
• Buy into Gold Equities
• ABX
• EGO
• NXG
• Buy into Silver Bullion

• Josh Brown's trade for Gold and Silver (VP Investment Fusion Analytics)
• Ivanhoe Mines Ltd. (IVN)

• Originally a gold and copper mine in Mongolia that recently announced they will begin mining three million oz of silver daily over the next decade.
•  A joint venture with the Mongolian government

QUESTION: Do you play the equities or the bullion?